These new metrics can help you access measurements to understand customer path-to-purchase, ensure inventory availability and enable associate empowerment in your retail store.
“In this new digital-driven age, retailers need to rethink store performance management and excellence,” says Sahir Anand, managing VP, research and principal analyst, EKN Research.
“By blending essential real-time operational data and customer knowledge, retailers can be in a better position to navigate business complexities. This eBook underscores the value of new KPIs and measurements to provide a new performance scorecard for retailers.”
Implement these three new pillars, designed and researched through the partnership between Tyco Retail Solutions and EKN Research, in your retail store. It will assist with measuring and understanding your customers’ retail journey and helping you to increase your conversion rate. Using this new scorecard can assist you in improving your store performance management, which in turn can help you increase your stores efficiency and profitability.
Related: Retail insights on how to capitalise on trends without investing a cent
“By focusing on the three pillars of retail operations, retailers can create a holistic performance management strategy and a better balance between sales and operational effectiveness,” says Tony D’Onofrio, chief customer officer, Tyco Retail Solutions.
“As store processes and technologies continue to evolve, retailers can address gaps within store metrics, KPIs and related performance improvement processes that affect associates and customers every day,” says D’Onofrio.
Here are the three pillars you should implement into your retail business to accurately measure store performance:
1. Understanding your customers’ path-to-purchase
With omni-channel shopping and multiple brand touchpoints, it’s challenging for retailers to understand consumer buying behaviour. 50% of retailers are unable to predict shopper traffic and this makes the balance between operational tasks and customer services harder to achieve.
If you don’t know when your store will be busy/quiet, you’ll always have too many, or not enough staff on shift, which is costing you either in wages or in your customers’ experiences.
2. Ensuring inventory accuracy and availability
Inventory is the foundation of your retail venture, regardless of which channel you use. Availability accuracy and access is vital for success. Only 40% of retailers consistently manage inventory performance and turnover metrics at store level, EKN reports.
The new KPI’s for scoring the ROI of store inventory, developed by the partnership behind this e-book, include:
- Available to promise
- Merchandise effectiveness and inventory turn
- Order fulfilment cost and cycle time.
Being able to offer specific inventory to your consumers at the right time is crucial to both your company’s in-store and omni-channel customer experience.
Related: How SA’s looming e-commerce boom will affect your brick-and-mortar store
3. Enabling store execution through empowered associates
Employee engagement and optimised labour utilisation can be effective tools in driving consistent service and customer satisfaction. But, retailers spend 70% of their labour hours dealing with operational tasks, and only 30% on customer service, according to research.
These new actionable KPI’s are effective in understanding operational and shopper satisfaction issues, as well as effective allocation of time resources:
- Engagement rates
- Schedule effectiveness
- Labour costs to sales ratios.
Implementing these three pillars in your retail organisation can assist you in improving conversion rates, customer experience, and the use of your team’s time. By combining these three pillars you can increase your retail stores profitability, effectiveness and as a result its competitive edge.
- Understand your customers’ path-to-purchase to increase your conversion rate.
- Ensure inventory accuracy and availability to improve customer experience.
- Enable store execution through empowered associates to improve the efficiency of your team.